Crypto traders lost $333 million in 24 hours amid market crash 
Cryptocurrency Aug 28, 2024 Share
The cryptocurrency market experienced a significant crash from August 27 to 28, liquidating thousands of traders mainly from long positions. Bitcoin (BTC) and Ethereum (ETH) led the liquidations among other cryptocurrencies, totaling over $333 million lost in 24 hours.
Finbold retrieved data from CoinGlass on Wednesday morning (UTC), showing the damage from these liquidation events in a surprising crash. Essentially, 92,360 crypto traders were liquidated for $333.95 million in the last 24 hours.
In particular, 82.8% were long-position traders who lost over $276.59 million from their bullish bets. The largest single liquidation happened on Binance, with the ETH/BTC pair for $12.67 million lost as ETH crashed.
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Interestingly, this recent market crash affected Ethereum traders more than usual, making Bitcoin and Ethereum liquidations nearly the same. The latter led by $2 million, with $104.24 million lost—most of which were also long positions.
Liquidation Heatmap and Total Liquidations. Source: Coinglass
Bitcoin (BTC) and Ethereum (ETH) price analysis
As of this writing, Bitcoin trades at $59,750 and Ethereum at $2,523. The two leading cryptocurrencies have over 4% losses in the last 24 hours, partially recovered from the crash.
Notably, BTC and ETH traded as low as $58,060 and $2,409 – a level some analysts already refer to as a possible bottom that will propel the market to new highs in an incoming bull run.
Bitcoin (BTC) and Ethereum (ETH) 24-hour price charts. Source: Finbold
One of these analysts is the renowned trader CredibleCrypto, who had previously warned of a too-high open interest (OI). The trader made a series of posts during the crash, showing how the OI has mostly reset with these liquidations.
Nature is healing. Some more liqs since the last tweet. $BTC https://t.co/6oZ0vsaXoF pic.twitter.com/LmQ6RQuPQr
— CrediBULL Crypto (@CredibleCrypto) August 27, 2024
In another post, CredibleCrypto pointed out Coinbase “buying aggressively” and explained he is now looking to build long positions.
“Coinbase is buying the dip aggressively, we’ve had a decent rinse in OI..as previously mentioned I’ve taken profit on main shorts- I think its probs best to be looking for potential longs at this time as opposed to shorts now.”
– CredibleCrypto
Whether it is a good time for shorting Bitcoin and Ethereum, or opening longs for these digital assets is uncertain. Nevertheless, the market has seen solid signals that a bull market is ready to start with favorable macroeconomics and strong demand incoming for crypto.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
